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The bad news keeps coming for Elon Musk and Tesla after a steep sales decline in Europe, as well as other data that revealed owners are returning their Teslas at “record levels.”
The Guardian cited data compiled by the research platform Jato Dynamics, which revealed that sales of new Tesla cars had slumped in Europe last month (February 2025).
It comes after it was revealed in February the Texas-based electric vehicle (EV) had sold less than 16,000 vehicles across Europe in January 2025.
Indeed, data from the European Automobile Manufacturers’ Association (ACEA) last month revealed Tesla sales were down 44 percent on average in January, across 25 countries in the EU, the UK, Norway and Switzerland. Tesla sold 9,945 vehicles in Europe in January, down 45 percent from last year’s 18,161, which resulted in Tesla suffering its single worst day sell-off since October 2024.
February sales
Now data from Jato Dynamics has reported revealed that Tesla sold less than 16,000 vehicles across Europe last month, down 44 percent.
However, in the UK the Society of Motor Manufacturers and Traders reported an almost 21 percent rise in the number of new Tesla cars registered in February, with the Model 3 and Model Y proving the second and third most popular after the Mini Cooper.
This UK rise was reportedly down to the ending of a subsidy.
“Tesla is experiencing a period of immense change,” Felipe Muñoz, a global analyst at Jato Dynamics was quoted by the Guardian as saying.
“In addition to Elon Musk’s increasingly active role in politics and the increased competition it is facing within the EV market, the brand is phasing out the existing version of the Model Y – its bestselling vehicle – before it rolls out the update.
“Brands like Tesla, which have a relatively limited model lineup, are particularly vulnerable to registration declines when undertaking a model changeover.”
Tesla rivals
But it is clear that Tesla continues to pay the price for Elon Musk’s close support of US president Donald Trump, his activities at DOGE, his support of far right causes, as well as intense competition from Chinese rivals.
Tesla’s bad fortunes were not replicated at rivals, which powered ahead in Europe last month.
Volkswagen for example reported a 180 percent increase in sales of battery electric vehicles to just under 20,000, while BMW and Mini sold a combined 19,000 such models last month, the Guardian noted.
Meanwhile Chinese-owned BYD reportedly recorded a 94 percent increase in sales in Europe to more than 4,000.
Separate figures show that BYD’s global sales topped $100bn (£83bn) last year, overtaking Tesla as the world’s biggest electric car company by revenue.
BYD, which last beat Tesla on global annual revenues in 2018, reported revenues of 777bn yuan (£86bn) in 2024, a 29 percent year-on-year increase. Tesla meanwhile reported annual revenues of $97.7bn last year, the Guardian noted
Polestar, which is primarily owned by Volvo’s parent company, Geely, recorded an 84 percent increase to more than 2,000 vehicles.
Record trade-ins
And in a further blow to Elon Musk, last week data from by US car shopping site Edmunds showed that Tesla owners have been trading in their vehicles at record levels since Musk joined Trump’s White House, CNBC reported.
The data from Edmunds published last Thursday said that March represented “the highest ever share” it had seen for Tesla trade-ins toward new or used cars from dealerships selling other brands.
“Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” Jessica Caldwell, head of insights at Edmunds, was quoted by CNBC in an email.
“As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
Edmunds also reportedly said that shopping for new models of Tesla vehicles on its platform dropped to its lowest level last month since October 2022 after peaking last November.
